Cantor Fitzgerald has increased its price target for Lam Research (NASDAQ:LRCX) to $320.00 and kept an Overweight rating on the semiconductor equipment maker. The firm pointed to a strong calendar year 2025 performance and a favorable outlook for wafer fabrication equipment (WFE) spending as the basis for its revision.
In Cantor Fitzgerald's view, Lam delivered notably stronger tool revenue growth in 2025 than the wider WFE industry. Tool revenue rose 40% for Lam in calendar year 2025, compared with WFE industry growth of 10% over the same period. The firm also noted that Lam's guidance for the March quarter came in ahead of consensus: the company projected $5.7 billion in revenue and $1.35 in earnings per share, versus consensus estimates of $5.3 billion and $1.19.
Looking further out, Cantor Fitzgerald emphasized a robust WFE outlook for 2026, forecasting 23% growth to $135 billion, which the research house said is consistent with its own modeling. Lam has reported that equipment demand remains tight and that visibility into 2027 is strong, with 2027 expected to be another year of growth.
The research note also discussed market share trends. Lam reported gaining more than 100 basis points of WFE market share during 2025. Cantor Fitzgerald's analysis suggests the gains may be larger - closer to 250 basis points - a difference the firm attributed to Lam's leadership in deposition and etch technologies across key end-markets including advanced foundry, NAND, DRAM, and advanced packaging.
On earnings, Cantor Fitzgerald increased its calendar year 2026 earnings-per-share estimate for Lam to $6.10, versus consensus of $5.40. The firm identified a potential "stretch goal" of $7.00. For 2027, Cantor Fitzgerald continued to model $10 in earnings per share, a figure the firm said could be "potentially conservative" given the early stage of AI infrastructure development.
Other brokerages have also adjusted their targets after Lam's recent results and guidance. JPMorgan raised its price target to $300 from $165, citing factors such as increased customer expedite requests and the company’s operational effectiveness. TD Cowen lifted its target to $290 from $170, pointing to an optimistic WFE outlook for 2026. Berenberg raised its target to $265 following positive guidance on WFE spending trends. Bernstein increased its price target to $275. KeyBanc Capital Markets reviewed the company’s second-quarter earnings results and maintained its Sector Weight rating.
Together, these moves illustrate a growing level of analyst confidence in Lam Research’s near-term demand trajectory and its competitive position in deposition and etch platforms. Cantor Fitzgerald’s combination of higher near-term earnings estimates and an increased price target underscores the firm's view that the company is well positioned within a tight equipment demand environment and a multi-year growth backdrop for WFE.
Context and implications
While the research notes and revised targets vary in magnitude, the common thread among the analysts cited is a more favorable read on customer demand patterns, the company's operational responsiveness, and the broader WFE cycle. Cantor Fitzgerald’s forecasted 23% expansion of WFE spending in 2026 to $135 billion, and its view that equipment demand remains constrained with visibility into 2027, are central to its more bullish stance on Lam.
Investors and industry observers will likely monitor incoming order flow, management commentary on customer timelines and expedite activity, and any additional color on market share shifts in deposition and etch to assess the sustainability of the revisions presented by Cantor Fitzgerald and other brokers.